Approved Code No. 48-Amendment No. 5
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SILK TEXTILE INDUSTRY
AS APPROVED ON FEBRUARY 11, 1935
WE DO OUR PART
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WASHINGTON : 1935
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Registry No. 263--01
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Approved Code No. 48-Amendment No. 5
AMENDMENT TO CODE OF FAIR COMPETITION
SILK TEXTILE INDUSTRY
As Approved on February 11, 1935
AIPPi'OVIN(; AMICENI)M.NT OF COD1)1 OF FAIRl COMPETITII irN 101:i THE SILK
An application haviiig been duly made pirI.,ant to and ill full
compliance with the provisions of Title I of the National Indut.-trial
Recovery Act, approved June 16. 1933, for app lroval of ;in naend-
ment to a Code of Fair Competitiol for the Silk Textile Industrly,
and hearings have been duly held tlhreon ;and the annexed rejprt
on said amendment, containing findings w it.li respect thereto, ]avin,
been made and directed to the President:
NOW, THEREFORE., on behalf of tlie President of the L'nited
States, the National Indlu-trial Recovery It ard. pl)u-.-ilal t to ;aiitih'r-
ity vested in it by Executive orders of the President. including
Executive Order No. 6859, dated September 27. 1:34, and otherwise;
does hereby incorporate, by reference, said annexed report and tdoe,"
find that said amendment and the Code as constituted after beinl
amended comply in all respects with the pertinent provisiolns a1nd
will promote the policy and pl)urpoees of :aid title of said act, and
does hereby order tlat .!,aid amendment be and it i. he:lieby a)lproved.
and that the previous approval of said Code is hereiy amllendedlI to
include an approval of said Code in its entirety as aImenidetld.
NATIONAL INDITTI~IAL RECOVERY BOARD.
By IV. A. HARnl MAN AtdmI.nistlratic, Officcr.
PI:ENTISS L. COONLEY,
Acting Di'ison A(dmini tr1a.or.
WASHINGTON, D. C.,
Febrwuay 11, 19JA.
114991-- 1573-46- 35
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report, on the Hearing covering the Amendment to
the Code of Fair Competition for the Silk Textile Industry, held in
the Fairfax Room at the Willard Hotel, Washingtion, D. C., Novem-
ber 7, 1934. The Amendment, which is attached, was presented by
duly qualified and authorized representatives of the Indultry, com-
plying with statutory requirements and being the same Agency that
originally submitted the Code.
In accordance with cutstomnary procedure every person who had
filed a request for appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
PROVISION. OF THE AMENDMENT
There are 4 Amendments as follows:
1. An Amendment prohibiting commercial bribery.
2. An Amendment defining duly accredited factors and,'or author-
ized selling agents.
3. An Amendment providing for open price filing for the Sewing
Threaand and Floss Division of the Industry.
4. An Amendennt regarding terms of sale of woven labels.
The Deputy Administrator in his final report to the National In-
dustrial Recovery Board on said amendment to said Code having
found as herein set forth and on the basis of all the proceedings in
It finds that:
(a) The amnendnent .to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of ob-
structions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
Production (except as may be temporarily required), by increasing
lhe consumption of industrial and agricultural products through in-
creasing purchasing power, by reducing and relieving unemploy-
ment, by improving the standards of labor, and by otherwise rehabili-
(b) The Code as amended complies in all respect- with the perti-
nent provisions of .-aid Title of said Act, incliidin~i without limit.
tion Sribsection (a) of Section 3, Sublvetion (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment.on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not desigIlned
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons this amendment has been approved.
For the National Industrial Recovery Board:
W A. RRIMAN,
FEBRIUARY 11, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE SILK TEXTILE INDUSTRY
Article VIII is amended by the addition of a new section, section
11, to read as follows:
1. No employer shall give. permit to be given, or offer to give,
anything of value for the purpose of influencing or rewarding the
actionn of any employee, agent. or representative of another in rela-
tion to the buisines- of the employer of such employee; the principal
of such agent or the represented party, without the knowledge of
such employer, principal or party. This provision shall not be con-
strued to prohibit free and general distribution of articles conm-
monly used for advertising except so far as such articles are actually
used for commercial bribery as hereinabove defined.
Article XI, Riblbon-, is hereby amended by the addition of a new
provision to read as follows:
The words duly accredited factors and or authorized selling
agents as used herein in relation to ribbon manufacturers, are
defined to mean individuals or concerns who sell merchandise
shipped to them on consignment or memorandum by manau facturers
for sale in the name of such manufacturers or factors or selling
agents pursuant to a written agency agreement. All ribbon manu-
factturers who sell through duly accredited factors and or author-
ized selling agents shall enter into written agency agreements with
said factors and/or selling agents and said written agency agree-
ments hall contain the following provisions and specifications:
(1) The mianlfantturer
prices not. less than those determined by the manufacturer.
(2) The manutfactiirer shall set forth in said agreement the com-
missions to be paid the selling agent.
(3) The manufacturer shall specify that. duplicates of each in-
voice giving full details of all sales, exclusive of the names of the
purchasers, shall be submitted to him monthly.
(4) The manufacturer shall specify in said agreement that. net
proceeds of sale, less commissions and other deductions set forth
shall be remitted to the manufacturer.
(5) The manufacturer shall set forth in said agreement that recon-
signment of merchandise shipped to a selling agent is prohibited
except reconsignment. to another registered selling agent with the
consent of the manufacturer.
(6) The manufacturer shall set. fopth in said agreement that duly
accredited factors and/or authorized selling agents cannot sell to
Article XI, Sewing Threads and Flosses, is hereby amended by
the addition of a new provision to read as follows:
SECTION 1. Each member of the Sewing Thread and Floss Indus-
try shall file with a confidential and disinterested agent of the Code
Authority or, if none, then with such an agent (lesin'i ld i b I, h
National Industrial Recovery Board. identified lis t.-o :i!I f his
prices, discounts, rebates, allowances, and all other terini. or cundi-
tions of sale, hereinafter in this Article referred to as '" lpr'ic terms
which lists shall completely and accurately conform to and repre-
sent the individual pricing practices of said member on his poound
goods", as differentiated from bulk" or small goods." Such
lists shall contain the price terms for all such standard products of
the industry as are sold or offered for sale by said member and for
such non-standard products of said member as shall be designated
by the Code Authority. Said price terms shall in the first instance
be filed within fifteen (15) days after the date of approval of this
provision. Price terms and revised price terms shall become effec-
tive immediately upon receipt thereof by said agent. Immediately
upon receipt thereof, said agent shall by telegraph or other equally
prompt means notify said member of the time of such receipt. Such
lists and revisions, together with the effective time thi.reof. .hall upon
receipt be immediately and simultaneously distributed to all mem-
bers of the industry and to all of their customers who have applied
therefore and have offered to defray the cost actually incurred by the,
Code Authority in the preparation and distribution thereof and be
available for inspection by any of their customers at the office of
such agent. Said lists or revisions or any part thereof shall not be
made available to any person until released to all members of the
industry and their customers, as aforesaid; provided, that prices
filed in the first instance shall not be released until the expiration of
the aforesaid fifteen (15) day period after the approval of this pro-
vision. The Code Authority shall maintain a permanent file of all
price terms filed as herein provided, and shall not destroy any part
of such records except upon written consent of the National Indus-
trial Recovery Board. Upon request the Code Authority shall fur-
nish to the National Industrial Recovery Board, or any duly desig-
nated agent of the National Industrial Recovery Board copies of
any such lists or revisions of price terms.
SECTION 2. When any member of the industry has filed any re-
vision such member shall not file a higher price within forty-eight
SECTION 3. No member of the industry shall sell or offer to sell any
products,'services of the industry, for which price terms have been
filed pursuant to the provisions of this Article, except in accordance
with such price terms.
SECTION 4. No member of the industry shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the indus-
try to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
SECTION 5. Each employer in his Division shall report on or before
August 1st and February 1st of each year his total dollar sales to
each customer for the preceding calendar half year. This informa-
tion shall be held in strict confidence by the confidential agent and
shall be used only as the basis for rendering the following reports.
On September 1st and March 1st of each year, the confidential
agent .-shall establish the ratings of all buyers of this division of
the industry on the basis of their purchases for each calendar half
Tyar. These ratings shall be on the basis of the present prevailing
custom in the industry of rating trade buyers in five classes and job-
hers in three classes.
l.0pon written or telegraphic request, the confidential agent shall
give members of the division the rating of any individual buyer.
The confidential agent shall on September 1st and March 1st of
each year advise each individual buyer of his individual rating in
this division of the industry and shall advise each individual buyer
of his own individual rating only, and the ratings of other buyers
shall be kept confidential.
The Code Authority shall have the right to order the confidential
agent to check and or correct any ratings upon request of any em-
ployer in the division and, or buyer.
'he cost of compiling and distributing this information to mem-
ber. of the division and to all interested parties shall be borne pro-
portionately by all members of the division desiring this service.
The confidential agent shall be appointed by the Code Authority
and approved by the National Industrial Recovery Board. The
records of the confidential agent may be examined by a confidential
agent. of the National Industrial Recovery Board at any time.
Article XI, Woven Labels, is hereby amended to read as follows:
Each employer shall bill woven labels on date of shipment upon
the term, of 2 10 e. o. m.
Aplprnvcrl ('Code No. 4S-Aimendment No. 5.
Registry No. 2(3-01.
UNIVERSIlrY OF FLOR|IDA